California Attorney General Rob Bonta says daily fantasy operators continuing to flout his opinion that their contests are illegal in the state are in for more than just words from his office.
- Attorney General Rob Bonta has stated that daily fantasy sports (DFS) contests, including peer-to-peer pick’em formats, constitute illegal sports wagering under California law and announced plans to enforce this interpretation.
- Companies like DraftKings, PrizePicks, and Underdog continue to operate in California, arguing the AG's opinion is non-binding, and have received supportive words from Gov. Gavin Newsom's office.
- The crackdown aligns with broader efforts to regulate gambling in California, backed by Native American tribes, and may impact a DFS market generating ~$200 million annually.
Speaking to the media earlier this week, Bonta told reporters that they can “absolutely” expect action from him against anyone ignoring the AG’s opinion of DFS, which is that it is illegal in the state.
"The next step is our enforcement, and laws are meant to be enforced,” Bonta said. “We expect our legal opinion to be followed and complied with by everyone governed by it."
MOMENTS AGO: In response to a question from @kcranews capitol correspondent @ZavalaA, California Attorney General @AGRobBonta @RobBonta weighed in for the first time on camera about his recent legal opinion stating online fantasy sports platforms are illegal in CA.
— Eytan Wallace (@EytanWallace) July 21, 2025
"It's a… pic.twitter.com/Ky1FcKW5x2
How exactly Bonta will go about enforcing his view of DFS, which is that it illegally amounts to sports betting in California, is the big question. The AG’s office did not respond to questions emailed by Covers on Tuesday, before this story was published.
Nevertheless, DFS operators such as DraftKings, PrizePicks, and Underdog are still present in California, albeit offering peer-to-peer contests, rather than games played against the house.
No peace for P2P
Even with the adjustment, those contests alone may be enough to earn operators the ire of Bonta’s office. That could create conflict for companies in a market that accounts for roughly 15% of DFS-related gross gaming revenue in the U.S., according to research firm Eilers & Krejcik Gaming. California Business Journal has also estimated state residents pay around $200 million annually in DFS entry fees.
“We are told that some operators offer pick’em as a peer-to-peer competition, in which participants compete against each other to make the highest number of correct predictions,” says a footnote in Bonta’s DFS opinion. “In our view, this version of pick’em also constitutes sports wagering because the entry fees satisfy the definition of a ‘bet’ or ‘wager’ under section 337a.”
California’s Department of Justice released the legal opinion on daily fantasy sports on July 3, with Bonta and Deputy Attorney General Karim Kentfield writing that running DFS games with California-based players is illegal in the state.
“Yes, California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located,” the opinion says. “Such games constitute wagering on sports in violation of Penal Code section 337a.”
The opinion added that participants in both pick’em and draft-style DFS are making “bets” on sporting events in violation of that same section of California law, which prohibits wagering on sports.”
Johnny-Law-come-lately?
DFS operators have pushed back against what they see as a “non-binding” take on their products, and they were also buoyed by comments from Gov. Gavin Newsom’s office that were seemingly critical of the AG’s opinion.
"We agree with Governor Newsom — AG Bonta got it wrong,” said J.T. Foley, executive director of the Coalition for Fantasy Sports, in a statement following the release of the DFS opinion. “The law has not changed, a fact the last two Attorneys General, Kamala Harris and Xavier Becerra, recognized as they specifically declined any similar action. We are hopeful the Attorney General heeds the Governor's call to find a constructive solution that preserves the games that California sports fans love.”
The opinion from the AG's office was initially sought in 2023 but was only rolled out this month. Whatever the timing, its arrival and Bonta's recent comments suggest a possible court battle is brewing over the legal status of DFS in California.
"The California DFS fight isn’t just about fantasy, however — it also implicates tier 1 OSB operators angling for future market entry," Eilers & Krejcik noted in their newsletter last week. "EKG expects DFS+ interests to mount an aggressive legal defense to preserve access to the California market."
At any rate, the ominous foreshadowing for DFS in California also comes amid a broader push to clarify what is legal gambling and what is not in the state.
That effort has the support of Native American tribes with brick-and-mortar casino operations. It also includes a bill that would prohibit sweepstakes casinos and legal and regulatory proceedings involving federally regulated prediction markets offering de facto sports wagering.
"It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account,” California Nations Indian Gaming Association chairman James Siva said in a statement following the release of the DFS opinion. "Illegal gaming denies consumers real protections and safeguards against illicit practices such as fraud and underage gambling.”
